Sources say that Blackstone is still tweaking its limited partnership agreement (LPA), as it tries to seal the deal with several large investors. One area of discussion, for example, is on transaction fee splits, which are currently at 50/50. That’s a bit more weighted toward the GP than the industry standard, so expect it to break slightly in favor of the LPs. There also are various LP calendar and allocation issues that still need to be dealt with.
Blackstone is hoping to secure $8 billion in the first close for this fund, which is its sixth. The official target is $20 billion. Blackstone’s prior fund-raising effort launched in 2004 with a $10 billion target, and ended up closing last summer of $22 billion.
A Blackstone (BX) spokesman declined to comment.